Unemployed young people were given notice yesterday that they face interviews about their readiness for work before they are allowed to sign on.

Gordon Brown yesterday signalled a shift in the government's New Deal scheme, to move claimants more quickly into employment assistance programmes.

The result will be that many young unemployed people expecting six months on benefit before facing the choice of a place in the New Deal or losing their right to claim will have to make that choice from the moment they claim social security.

Mr Brown said youth unemployment had fallen by 80%. The aim now was to tackle the problems that beset the remaining 20% and future benefit claimants .

There will be a move to "stage two" of the New Deal, which is likely to involve claimants undergoing tests to judge their level of skills and any problems that might prevent them getting a job.

Employment service staff are expected to conduct the interviews and assess each claimant. Those who are told they could benefit will be sent on courses to enhance their skills or literacy, or improve their attitude. Under current rules they must wait six months before they are eligible for support.

"The starting point is a new 'employment first' principle," Mr Brown said. "In the past the unemployed signed on for benefit before they looked for work. Now, before receiving benefit the 'employment first' principle means they will first have to be interviewed about job opportunities and the steps they are ready to take to get back into work."

The New Deal had exceeded its target of moving 250,000 young people into jobs. More than 270,000 had gone through the scheme into jobs, at half of the planned cost.

He stressed that the demands of the economy meant that 2.5m more employees with degrees or higher degrees would be needed by businesses along with a wider workforce with higher skills and more qualifications.

"So at the heart of our approach is that government must meet its responsibilities, providing incentives for work and training; companies must meet their responsibilities to upgrade skills in the workplace; and people must take up their responsibilities to work and to prepare for the jobs of the future."

For claimants over 25 years old who have yet to find work, the government is proposing to spend £200m from April on intensive coaching and stronger sanctions if they fail to take up the offer of support.

Drug addicts unable to find work are the target of a £40m programme that will mean they receive mentoring and training, but they will need to get off drugs before they can sign up. "We will fulfil our responsibility to help them; they must fulfil their responsibility to become drug-free."

Paul Convery, head of the independent Unemployment Unit and Youthaid, applauded what he called a move away from the mechanistic formula laid down by the New Deal. "It is a bit criminal forcing people to tread water and wait six months before they get help."